While the children's centre initiative has exceeded its target of reaching 650,000 children in deprived areas by March 2006, phase two targets were ambitious and 'most will need to find innovative ways to fund new centres', the report said.
Nine centres had waiting lists for childcare, but 11 had empty places, 'indicating mismatches between supply and demand' and staff in these centres felt that fees were often too expensive for disadvantaged families.
Spending on the running of centres varies widely - from an average of Pounds 580,000 for former Sure Start Local Projects to £380,000 for others - and the relationship between centres' expenditure and the number of children and families they reach is 'unclear'.
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